4.2 - Factors that can cause Variations in Economic Performance Flashcards
What are the four factors that can cause variations in economic performance (FEGH)
The three factors:
1. Foreign Ownership Levels
2. Employment rates
3. Government Debt Levels
4. Household Debt Level
How is Foreign Ownership Levels necessary?
It is necessary for some countries to ensure that there is sufficient investment and money to develop sectors of the economy.
What is the definition of ‘Full Employment?’
Full Employment involves all people aged 15+ who are able to or willing to work can be employed in a job.
What are the characteristics of people in ‘Full Employment? (HCD)?’
Characteristics of people in ‘Full Employment:’
- Have more disposable income to buy goods and services they need and want
- Can afford housing
- Don’t have to rely on government for social security
What is meant by ‘Government Debt Levels?’
When the government spends more than it receives, it runs a budget deficit. They do this budget deficit often to stimulate the economy.
What happens during a budget deficit?
During a budget deficit, debt increases, leading to the increase of interest repayments and economic recession.
What is meant by ‘Debt Level?’
Debt level is the amount of money that is owed by a person or company to another party (can be a bank, person, organization, etc.)
(Related to Household Debt Level) what happens when debt level increases and more and more people are unable to work or have no work?
If debt level increases and more and more people are unable to work or have no work, the living standards decrease.
What is the minimum wage in Australia?
The minimum wage in Australia is $19.49 per hour.
What is the current unemployment rate in Australia?
The current unemployment rate in Australia is 4.1%.
What is minimum wage?
Minimum wage is an employee’s base rate of pay for the ordinary hours worked. It ensures that employees are protected and given a fair and reasonable pay to live on.
Who determines the minimum wage in Australia?
The Fair Work Commision determines the minimum wage in Australia.
What 4 factors impact living standards (MGTG)?
Impacts of living standards:
- Minimum wage
- Government payments
- Taxation
- Government-funded services
What are the three types of tax?
The three types of tax are:
1. Income tax
2. GST (Goods & Services Tax)
3. Business tax
